SOUTHPORT, Ind. -- Some Southport City Council members are calling for changes after a newly released state audit showed the city has been mismanaging taxpayer money.

The report from the State Board of Accounts said the city did not keep proper bank records, did not properly advertise its budget before passing it, paid for things out of the wrong funds and racked up late fees when paying vendors.

Council members Jim Cooney, Rose Harrison and Susan Schmoll told 6News' Kara Kenney that they are concerned about the findings and want the current clerk-treasurer replaced.

The former clerk-treasurer stepped down in summer 2008, before the audit was released, but the council members said the problems persist.

"As you can see, Southport is going down the tubes," Harrison said. "I call it checks and balances. There are no checks and balances."

The report indicates the current clerk-treasurer has paid vendors late and racked up late fees.

"It's a negative impact on the city of Southport. We need to make sure our house is in order before we pursue anything else," Cooney said. "This audit does not put a good light on the clerk-treasurer's office. We've offered to help on more than one occasion."

Mayor Rob Thoman praised the findings of the audit, and said the city has made improvements, upgrading software and replacing the clerk-treasurer after discrepancies were discovered.

"When you don't balance your checkbook to your accounting records, something is not right, and that takes a lot of energy to get corrected," he said. "I think the council is really the one who's clueless to what is going on and they're striking out with their ignorance ... when it's their ignorance and their incapacity that's really the problem."

The audit showed that the mayor has spent $80,000 in the past two years on an accounting firm, but council members said something needs to change before things get even worse.

"I don't understand, if we're spending all this money with him, why are we having problems?" Scholl said. "Either we get a new clerk-treasurer, or we get her the help she needs."

The former clerk-treasurer was not home when 6News knocked on the door on Monday. The current clerk-treasurer was at training in Muncie on Monday and did not return Kenney's calls.

More Information: Southport Audit